Act of Endowment, Chapter 5 Assets and Accounting
29 The assets of the Corporate Body shall be as listed on the Inventory Asset Sheet.
(Classification of Assets)
30 The assets of the Corporate Body shall be divided into basic assets and operating assets.
30.2 Basic assets shall be the facilities and equipment necessary for The School instituted by the Corporate Body, or the money required for these items. Basic assets shall be assets listed in the basic assets section of the asset inventory sheet, and assets which will be incorporated into basic assets in the future.
30.3 Operating assets shall be assets necessary for the operation of The School instituted by the Corporate Body other than assets listed in the preceding paragraph.
30.4 Regarding financial or material donations, if there is a designation by the donor, the donation will be incorporated into basic assets or operating assets as per the designation.
(Restriction on the Disposal of Basic Assets)
31 Basic assets must not be disposed. However, when it is necessary for the operation of the Corporate Body, a limited portion may be disposed of by a Board of Directors vote of two-thirds or more of the total number of Directors.
(Custody of Reserve Funds)
32 The Chairperson of the Board of Directors shall oversee the reserve funds portion of basic assets and operating assets, and shall purchase trustworthy negotiable securities with it, or entrust it with a trustworthy trust bank, or place it in a fixed time deposit in a trustworthy bank, etc.
(Meeting of Expenses)
33 The expenses incurred in operating The School instituted by the Corporate Body shall be met from income generated from the real estate and reserve funds portion of basic assets and operating assets, tuition income, entrance fees income, certification fees income, and other operating assets.
34 The accounting of the Corporate Body shall be conducted in accordance with the Gakkou Houjin accounting standard.
(Budget and Operational Plan)
35 The budget and operation plan of the Corporate Body is compiled by the Chairperson of the Board of Directors prior to the beginning of each fiscal year, and must be passed by a vote of two-thirds or more of the Directors present at the Board of Directors meeting. The same procedure shall be followed when making important modifications to the same.
(Assumption Of A New Obligation That Is Not In The Budget Or Waiver Of A Right)
36 Except for that which has been budgeted, newly assuming an obligation or a waiving a right must be passed by a vote of two-thirds or more of the Directors present at the Board of Directors meeting. The same procedure shall be followed for loans (except for a short-term loan that will be repaid from the current fiscal year’s income).
(Settlement of Accounts and Report of Actual Results)
37 The Settlement of Accounts report for the Corporate Body shall be produced, and the Supervisor-Auditors' opinion solicited, within two months of the end of each fiscal year.
37.2 The Chairperson of the Board of Directors must, within two months of the end of each fiscal year, report the Settlement of Accounts and actual operating results to the Board of Councilors and solicit their opinion.
(Keeping and Inspection of the Inventory Asset Sheet, Etc.)
38 The Corporate Body must produce the Inventory Asset Sheet, Balance Sheet, Statement of Revenue and Expenditures, Operations Report, and the roster of Officers and others ( listing names and addresses of Directors, Supervisor-Auditors and Councilors) within two months of the end of each fiscal year. (SY19-20:27 BoC; SY19-20:87 BoD)
38.2 The Corporate Body must keep the documents of the preceding paragraph and the Supervisory Audit Report of Article 17 Item 4, Provisions and standards for remuneration to the Officers (hereinafter in this Paragraph, "the Inventory Asset Sheet, etc.") at each office, and must provide access to the Inventory Asset Sheet, etc., excluding the roster of Officers and others, and Act of Endowment for review when so requested by persons with direct connection to The School instituted by the Corporate Body and stakeholders only, except for when there are reasonable grounds for denial. (SY19-20:27 BoC; SY19-20:87 BoD)
38.3 Regarding the preceding provision, the Corporate Body shall provide access for review of the roster of Officers and others when so requested, but shall remove individual's addresses. (SY19-20:27 BoC; SY19-20:87 BoD)
(Registering Changes in Total Assets)
39 Changes in Total Assets of the Corporate Body, as of the end of each fiscal year, must be registered within three months of the end of the fiscal year. (SY19-20:27 BoC; SY19-20:87 BoD)
40 The fiscal year of the Corporate Body shall start on April 1 and end on March 31 of the following year.
SY19-20 amendments approved by the Governor of Tokyo, May 14, 2020
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